4 ms·
That's one big reason it's hard to scale a service business. Why maybe a fraction of X when you can make X?
by amorphid 11y ago
That's one big reason it's hard to scale a service business. Why maybe a fraction of X when you can make X?
- kamaal 11y agoIts not just paying commissions to the third party. If you are a good taxi driver, who keeps their car clean, provides bottled drinking water to customers, are punctual, polite, trustworthy etc you will get many people who would like to call you directly instead of going through a service like Uber. And along the way you would have met many customers who are exactly like you- polite, trustworthy and nice. It becomes a natural fit. Uber kind of services work because they are currently burning millions of investor money to subsidize your travel. Once they run out of money, you are back to the same thing again. Which is why some times you must do extra work for free, because it keeps people around you happy and in return they are indebted to do something in return for you(Recommend you, tip you, hire you etc)
- untog 11y agoTaxi services are different though - you might be nowhere near your valued customer when they call. And they might be more inclined to take an "OK" driver rather than wait 30 minutes for you to get to them.
- kamaal 11y ago>>you might be nowhere near your valued customer when they call Traveling adhoc without planning is only for single 20 year olds start up techies. People with families, elderly etc generally have to plan in advance if they decide to do something.
- ViViDboarder 11y agoAnd even then there's an advantage to getting a ride from an app. You can track your driver. I can't count the times cabs just no showed when I was living in DC. Nearly missed a few flights.
- pbreit 11y agoWrong. On a gross margin basis, Uber is wildly profitable.